Seven Days reported on Monday that the company was coming to town this week to sign up drivers and distribute phones to them. At the time, Uber spokeswoman Kaitlin Durkosh said the company was still doing “market research.”
Apparently, Uber was pleased with the results.
The company has been advertising in the Burlington area for months. According to William Guernier, general manager for regional expansion at Uber, hundreds of people have signed up to be drivers and thousands have downloaded the app. Guernier declined to provide specific numbers.
Several hours before the launch, Durkosh and Guernier met with Mayor Miro Weinberger. His chief of staff, Mike Kanarick, said the mayor requested the meeting after learning about the driver sign-ups. Both Uber and the mayor described the meeting as “productive.”
Uber has upset traditional taxi companies and clashed with regulators over the question of which laws apply to them. Queen City cabbies have written to the mayor and city council requesting that they ensure Uber is subject to Burlington’s taxi ordinance, which requires drivers to get a license from the city, use meters to determine their rates and adhere to certain safety standards. Burlington taxi regulators, currently based at the Burlington International Airport, have made similar requests. The city’s current ordinance, which was overhauled in 2011, does not address smartphone-based car companies.
In response, the city attorney’s office began work on a memo — not yet complete — to address concerns.
Now that Uber is here, it’s hoping to have some say. “We’ll be working with the mayor’s office in the coming weeks to help start the discussion about what these new regulations should look like,” Guernier said. In the first meeting, he said, “We helped educate them a little bit more about Uber and they are excited about new options for the people of Burlington.” Guernier went on, “The mayor had some very good questions but I think he gets it. That this is additive to the transportation infrastructure in Burlington and it can only help people get around and it can only help local people earn a bit of extra money.”
Weinberger released a statement Thursday afternoon that struck a similar tune. “Today, after a productive meeting with representatives from Uber, I’m encouraged by the possibility that Uber and its ride-sharing technology platform could improve Burlington’s transportation options. Like everyone else, Uber will have to play by the rules. To that end, I was pleased that Uber expressed a willingness to work with the city on a number of significant regulatory issues, including public safety, consumer protection and municipal payments. We are exploring whether, as has been done in other communities, the city may be able to enter into an interim operating agreement with Uber that would address Uber’s entry into the market. I look forward to working with the city council and existing stakeholders to investigate possible paths forward.”
Uber, which started in San Francisco in 2010, now operates in more than 200 cities worldwide. The model is simple: People open the app and hit a button to request a ride; their credit card is charged automatically after the driver drops them off. Multiple riders can split the fare. To become a driver, people need to pass a background check, participate in a training and submit their license, vehicle registration and insurance information to Uber. Cars have to be 2004 models or newer and have four doors. Uber provides up to $1 million in primary insurance to its drivers. Drivers are required to rate passengers; passengers have the option of doing the same for drivers.
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As a local insurance advisor, I want to offer some cautionary comments:
When you sign up for Uber, your car becomes a livery vehicle in the eyes of your insurance company. That’s a commercial use – and your regular auto insurance will NOT cover you in the event of an accident. This is a very scary exposure, especially because you can be sued by the person you are driving around.
Further, for decades now, we have all been cautioned against the dangers of hitchhiking and/or picking up hitchhikers. You know NOTHING about the person you are picking up or who is picking you up! That is a very scary proposition in this day and age.
I would encourage all my friends, family, and clients to stay far away from ride share services like this.
Re: Benjamin – I think that from an insurance perspective, you are spot on in terms of what drivers should be concerned about. While Uber seems to provide decent primary liability coverage while one is carrying a passenger, if one is in an accident while driving for them but not carrying a passenger (i.e. going to a pick up point or waiting for something to pick you up), the coverage they provide is much thinner.
From a passenger’s perspective, though, I see little reason to be concerned. Outside of Burlington city proper, do municipalities even screen cab drivers? Are there regulations in a place like Essex or Shelburne? You know nothing about a cab driver who will be picking you up either.
Honestly, what would be ideal for taxis in the Burlington area to join either the taxi version of Uber, or a competing service like Halio or myTaxi. Having used smartphone based apps for rides for a while now (I moved out of VT in Feb, but still visit regularly), I can say they are miles above traditional taxi service. The ability to get an immediate real time arrival estimate, to see your cab in real time as it travels towards you, and to be able to easily pay with a credit card is just incredibly valuable. Additional these apps allow you to hail whatever vehicle is closest, rather than waiting for the taxi company you called to arrive, when another cab may be much closer.
These factors are probably less significant for someone who only takes a cab on rare, pre-planned occasions, such as for a flight. But for someone who uses the service more regularly (I lived in Burlington without a car for eight years), smartphone based apps versus traditional service is like night and day.
My advice to cab companies in the area (or independent drivers)? Get ahead of the game, and try and get a competing cab-based smartphone service now. History has shown that resisting the progress of technology is almost always a loosing battle…
Ross may be right about insurance coverage for uber passengers. But, to think that you are being picked up or driving a stranger is a misinformed analysis. When you sign up as a passenger, drivers can see your identity as far as financial transaction is concerned. There’s no way a serial killer would provide a picture of himself, with credit card info to uber, and then victimize an uber driver.